Facebook vs. Netflix (NFLX)

Some analysts recently have been noting that Facebook could get into the video streaming business and have success at it. We wanted to clear this situation up for stock investors.

So far, the only studio to offer movies on Facebook has been Warner Brothers. The Dark Knight was offered through Facebook. It had very minimal success on Facebook.

The better option for now could be deeper integration of Netflix into Facebook. We wouldn't be surprised though if down the road, Facebook did their own thing in the video streaming space.

NFLX sold off on the speculation that Facebook could become more serious about video streaming.

NFLX has climbed from under $70 to over $200 over the past year. It has long passed Blockbuster, which is now in bankruptcy.

Facebook could be a formidable foe to NFLX once it decides to take them on. Right now, it appears they are working together for the most part. That could change down the road though and cause NFLX to suffer.

Comments: